GBP/USD Forex Signal - 31 May 2016

GBP/USD Signals Update

Yesterday’s signals were not triggered as the price did not quite reach 1.4581 before the strong bullish reversal, nor was there any bearish price action when the price reached 1.4648.

Today’s GBP/USD Signals

Risk 0.75% per trade.

Trades must be taken between 8am and 5pm London time today only.

 

Long Trades

  • Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.4648 or 1.4581.

  • Put the stop loss 1 pip below the local swing low.

  • Adjust the stop loss to break even once the trade is 25 pips in profit.

  • Remove 50% of the position as profit when the price reaches 25 pips in profit and leave the remainder of the position to run.

 

Short Trade 1

  • Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.4799.

  • Put the stop loss 1 pip above the local swing high.

  • Adjust the stop loss to break even once the trade is 25 pips in profit.

  • Remove 50% of the position as profit when the price reaches 25 pips in profit and leave the remainder of the position to run.

GBP/USD Analysis

In my forecast yesterday, I wrote that a bullish bias should be maintained as long as the price stays above 1.4441 or thereabouts.

The chart below shows how the price turned with a doji candle just a few pips above the identified support level at 1.4581, resuming its longer-term bullish move. The move really happened during the late Asian session with traders returning to their desks following yesterday’s holiday in London and New York.

However the price now seems to be falling off from its Asian session high and the next test will be whether the former resistance at 1.4648 can now hold as support.

GBPUSD

There is nothing due today concerning the GBP. Regarding the USD, there will be a release of CB Consumer Confidence data at 3pm London time.

Adam Lemon

Adam Lemon began his role at DailyForex in 2013 when he was brought in as an in-house Chief Analyst. Adam trades Forex, stocks and other instruments in his own account. Adam believes that it is very possible for retail traders/investors to secure a positive return over time provided they limit their risks, follow trends, and persevere through short-term losing streaks – provided only reputable brokerages are used. He has previously worked within financial markets over a 12-year period, including 6 years with Merrill Lynch.